Export Rong Xin Tong

Export Rong Xin Tong means that CEXIM (the assignee) purchases receivables which are generated from the export of goods or services and undertaken/avalised by recognized enterprises (normally project owners), insurance companies or government agencies to make payment without addressing a bill. 

Acceptable Receivables Include: 1. Drafts addressed by the exporter and accepted by the importer; 2. Promissory notes made by the importer to the exporter; 3. Outstanding claims undertaken/avalised by the importer to pay; 4. Debts guaranteed by recognized insurance companies or government agencies without addressing a bill. 

Export Rong Xin Tong can be “with recourse” or “without recourse”. 

Benefits for Exporters 

Enhancing Export Competitiveness:  The exporter is able to provide its existing or new customers with more competitive payment terms such as open account and documentary collection against acceptance, thus expanding overseas market and increasing business opportunities;  

Protection against Risks: The importer’s credit risk is passed on to CEXIM and under non-recourse factoring the exporter’s credit line is not occupied; 

Saving Administration Cost: Without workload in asset management and collection of accounts receivable, administration costs can be saved greatly with the reduced demand in both labor and processing time; 

Simple Formalities: Formalities of single-factor export factoring are simpler and easier than that of export credit; 

Providing Finance Facilities: CEXIM fully guarantees the exporter’s collection of payment through discounting the receivables, to relieve the problem of the exporter's working capital tied up in accounts receivable, and to accelerate the exporter’s cash flow; 

Avoiding Exchange Exposure, Optimizing Financial Structure: CEXIM buys out accounts receivable so that the exporter is able to settle foreign exchanges in advance, avoid exchange risk and improve financial statements.  

When Do You Choose Export Rong Xin Tong?  

The importer is unwilling or unable (lack of credit) to choose settlement by documentary credit; 

The exporter is unable to reach the requirement of credit period in two-factor export factoring or unable to find a qualified import factor which is willing to cooperate. 

Tips 

The debtor of receivables (foreign importer) shall be appropriately qualified, financially strong and highly creditworthy; 

Please provide following documents: application/report for Export Rong Xin Tong, business contract and relevant background information, information and certifications about credit standing of the debtor and the guarantor; 

After our purchase of receivables, the exporter cannot agree the debtor or guarantor’s request to amend payment term, amount of the undue claim, payment instruction or etc without our consent; 

The clause of non recourse becomes void to the exporter under following situations: 1.A court injunction issued; 2.Invalid receivables; 3.A fraud or default committed by the exporter; 4.A severe defect found in the transaction.